Does your Will include sensible equalisation provisions?

Sometimes super or life insurance proceeds are paid directly to one beneficiary, bypassing the estate and sometimes children enjoy significant loans from the Will owner while other children do not get the chance. So, how can you ensure your beneficiaries each receive a fair share of your estate after you die? Modern estate planning Wills include sensible ‘equalisation provisions’. These provisions allow executors to account for recorded loans and extra proceeds when distributing the estate to protect the estate distribution wishes of the Will owner. But more importantly, these provisions help minimise the chances of disputes between beneficiaries.

When you have two or more primary beneficiaries, equalisation provisions included in your Will give your executors the authority to protect your wishes for the equal or unequal division of your estate to your primary beneficiaries by considering common issues including:

i) Financial gifts made to primary beneficiaries during your lifetime, which you have recorded in writing;

ii) Amounts owed to you by any of the primary beneficiaries under a written loan agreement;

iii) Any financial obligation you may have at the date of your death as guarantor for any of the primary beneficiaries;

iv) Superannuation and pension death benefits paid to one of the children who is a dependant and another who is not a dependant;

v) Life insurance policy ownership: e.g. death benefits paid to a child nominated as a policy owner or beneficiary;

vi) Discretionary trust allocations (it may be appropriate to provide that the discretionary trust become a restricted, fixed, or discretionary trust for a beneficiary unlikely to have children);

vii) Personal chattels of significant monetary value (for example a valuable artwork or piece of jewellery). ------------------------------------------- At Will Wizard, we provide all the estate planning documents you need for one fee. - Testamentary trust Will - Enduring Powers of Attorney - Appointments of Enduring Guardian - Advance Care Directive - Medical Decision Maker - Memorandum of Wishes - Pet Guardian Record - Major Asset Record - Heirlooms & Chattels Record - Beneficiary Loans Record - Social Media Data Record Try our free online tutorial today. https://www.willwizard.com.au/